Indian auto-backed securities to remain stable: Moody’s

Chennai, March 2 (IANS) Global credit rating agency Moody’s Investors Service on Thursday said the performance of Indian auto-backed securities (ABS) is not expected to deteriorate post March 2017.

In a statement, Moody’s said after worsening immediately after demonetisation last November the performance of rated Indian ABS levelled off in January 2017.

Moody’s said the performance of rated ABS is not expected to deteriorate beyond March 2017, as the economy recovers, and oil prices remain range-bound and budget policy initiatives provide support.

“Signs of stabilisation appeared in January 2017, with collection efficiency rising half a percentage point to 93 per cent from December 2016, but was still 1.9 percentage points lower than the average in the three months to October 2016,” the statement said.

According to Moody’s the rate of increase in 30 plus days delinquencies has recently stabilised, rising only to 11.1 per cent in January 2017 from 10.9 per cent in December 2016, compared to a 1.9 percentage point increase over November and December 2016.